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Image Credits:Onyx Private / Victor Santos, co-founder and CEO of Onyx Private
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Miami - basedOnyx Private , a Y Combinator - bet on digital money box that provided banking and investment funds services for high - earning Millennials and Gen Zers , is terminating its bank operations .
In a March 13 e-mail to a client view by TechCrunch , with a subject crease that read : “ Important Notice : endpoint of Bank Operations and Account Closure”Onyx wrote,“We are publish to inform you of our decision to stop our service and initiate the gag rule of all associated story starting today . ”
carbon monoxide - laminitis and CEO Victor Santos confirmed to TechCrunch that the company was “ moving away from the B2C model ” but say that it was shift its line of work model , not close down .
Y Combinator has listed the company as “ inactive ” on itswebsite , something Santos could not explain . ( Update : The text has since been update post - publication ) .
He said Onyx will be shift to a “ B2B white - label platform - as - a - service model for community of interests bank , regional bank , and mention unions ” that desire to set up digital apps built for young affluent consumer . Santos take that Onyx had been explore the idea over the past year and had made developments with some mate .
Less than a year ago in May , the startup announced that it hadraised $ 4.1 million in speculation fundingfrom investor such as Village Global , Y Combinator , Global Founders Capital , One Way Ventures , 186 Ventures and Olive Tree Capital . At that time , the company say that since its launch nearly a yr prior , Onyx Private – which say it require to be the “ next multiplication UBS ” – had grown 30 % calendar month - over - calendar month and was processing over $ 4 million in transaction payment economic value per month . It also claimed to be nearing $ 5 million in TPV ( full payment volume ) .
Santos today refuse to disclose how many banking customers Onyx had . Although a source distinguish TechCrunch that regulatory publication may have play a part in this decision , Santos dismissed that , say us thatno regulatory issues make the inauguration to shut out down its verbatim - to - consumer banking operation .
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He add together : “ It was purely a strategical decision that leave us to leverage the base of existing FIs [ financial institutions ] and apply the applied science we have built to descale in a more capital - efficient manner . ”
At the time of its fundraise , the company had named Piermont Bank as its banking partner . Today on itswebsite , Onyx say that “ banking services [ are ] allow by i3 Bank . ” Santos tell TechCrunch thatOnyx “ started with Piermont but transitioned last year to i3 . ”
Piermont declined to comment . TechCrunch has hit out to i3 for comment .
In the email , banking customer were told that the shut - down will take piazza on April 14 but that “ surcease of our rewards programme ” was “ effectual straight off . ”
Are you a fintech employee or insider with perceptiveness to divvy up ? contact lens Mary Ann Azevedo via email at maryann@techcrunch.com or through encrypted app Signal at 408.204.3036 .
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